What To Do If You Have Repairs As Part Of Your Contract To Buy Or Sell…

When you are buying or selling a house, and there are notes written into the contract regarding repairs – keep this in mind…

The buyers loan underwriter will see the repair notes in the contract and he or she will make these repairs a condition of the loan.

The underwriter will request that the appraiser go back out to the property to verify the repairs are complete.

This can cause delays in closing.

If you do have repairs written into the contract try to make sure they get done as soon as possible.

This way there will be time to send the appraiser back out to verify the work has been done. …and still close on time!

That’s it for today!

Have a good day today!  …and thanks for reading.

Brett
To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

New FHA Changes To MIP Effective June 3rd…

With it’s Mortgagee Letter 2013-04 HUD has made changes to their Mortgage Insurance Premium (MIP) that went into effect June 3rd, 2013.

It’s not good news, but here is the news…

HUD has removed the MIP exemption for loans with terms of 15 years or less and less than or equal to 78% loan to value ratio at origination.

So, in other words if you were getting a 15 year FHA mortgage with less than 78% your MIP used to be zero, and now it’s .45% of the loan amount annually.

The other change from this mortgagee letter is that HUD has revised the period for assessing their annual MIP.

The chart below shows these changes…

	LOAN TERMS > 15 YEARS
LTV	Previous	New
< 78 %	5 years	11 Years
> 78 ? 90%	Cancelled at 78% LTV or 5 Years	11 Years
> 90%	Cancelled at 78% LTV or 5 Years	Loan Term

These changes will reduce the appeal of FHA loans for many people. …rightfully so.

Call me or email me if you have questions about this.

That’s it for today!

Have a good day today!  …and thanks for reading.

Brett
To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

Where Is Your Down Payment Money Coming From?…

One of the most important things you will have to do when you apply for a loan is to show that you have the money for the down payment.

This is called sourcing in the mortgage industry.

For instance, the down payment on an FHA loan is 3.5%. If the seller is paying your closing costs – you will still have to pay your 3.5% down payment.

You can have this money in your checking account or savings account now. You can borrow it from your retirement account. …You can even get the down payment as a gift.

…but, it’s crucial that we are able to show where it’s coming from.

I can tell you that cash is a problem when it comes to sourcing your down payment. You will need to put it in the bank and leave it for 60 days before we can use it.

If you aren’t sure where your down payment is coming from – find out now. …before you apply for a loan.

That’s it for today!

Have a good day today!  …and thanks for reading.

Brett
To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.